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Eurozone retail sales experienced a modest increase of 0.1% month-over-month in August 2025, partially rebounding from a revised decline of 0.4% in July, aligning with market expectations. This improvement was primarily fueled by increased sales in food, beverages, and tobacco, which rose by 0.3% from a previous drop of 1.1% in July, as well as automotive fuel sales, which climbed 0.4% after a 1.6% decrease. These gains helped offset a minor decline in non-food products, which saw a slight drop of 0.1%, following a 0.3% rise in the previous month. Among the major economies in the region, both France and Spain reported growth with increases of 0.5% and 0.4%, respectively, recovering from declines of 0.9% and 0.4%. Conversely, the Netherlands’ sales remained steady, while Germany and Italy experienced further contractions, with Germany decreasing by 0.2% and Italy by 0.3%. On an annual basis, retail trade growth substantially decelerated to 1.0% in August, marking the slowest year-on-year growth since July 2024.